DHS awards $15.7M contract for financial audit services to KPMG LLP
Contract Overview
Contract Amount: $15,730,573 ($15.7M)
Contractor: Kpmg LLP
Awarding Agency: Department of Homeland Security
Start Date: 2025-02-10
End Date: 2026-05-08
Contract Duration: 452 days
Daily Burn Rate: $34.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: FINANCIAL STATEMENT AUDIT
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20528
Plain-Language Summary
Department of Homeland Security obligated $15.7 million to KPMG LLP for work described as: FINANCIAL STATEMENT AUDIT Key points: 1. KPMG LLP, a major accounting firm, secured the contract. 2. The contract is for financial statement audit services. 3. The Department of Homeland Security (DHS) is the awarding agency. 4. The contract duration is 452 days. 5. The contract was awarded under full and open competition.
Value Assessment
Rating: good
The contract value of $15.7M for a 452-day financial audit appears reasonable when benchmarked against similar large-scale government audit contracts. Pricing is likely competitive due to the full and open competition.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, allowing multiple qualified firms to bid. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The use of full and open competition suggests that taxpayer funds are being used efficiently by seeking the most cost-effective solution for essential audit services.
Public Impact
Ensures financial accountability and transparency within the Department of Homeland Security. Supports the integrity of government financial reporting. Provides an independent assessment of DHS's financial statements.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if audit scope expands unexpectedly.
- Reliance on a single firm for a critical function.
Positive Signals
- Awarded via full and open competition.
- Firm Fixed Price contract type limits cost uncertainty.
- Experienced contractor (KPMG LLP).
Sector Analysis
This contract falls within the professional services sector, specifically accounting and auditing. Government spending on financial audits is crucial for maintaining fiscal responsibility and compliance across all agencies.
Small Business Impact
The contract was awarded under full and open competition, and there is no indication of specific set-asides for small businesses. Large accounting firms like KPMG typically dominate these types of large-scale federal contracts.
Oversight & Accountability
The Office of the Inspector General (OIG) is responsible for overseeing this contract, ensuring that the audit is conducted effectively and meets all requirements. The OIG's involvement adds a layer of accountability.
Related Government Programs
- Offices of Certified Public Accountants
- Department of Homeland Security Contracting
- Office of the Inspector General Programs
Risk Flags
- Potential for scope creep leading to cost increases.
- Dependence on a single contractor for critical audit function.
- Risk of audit findings requiring significant corrective actions.
- Contract duration may not align perfectly with fiscal year end reporting needs.
Tags
offices-of-certified-public-accountants, department-of-homeland-security, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $15.7 million to KPMG LLP. FINANCIAL STATEMENT AUDIT
Who is the contractor on this award?
The obligated recipient is KPMG LLP.
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (Office of the Inspector General).
What is the total obligated amount?
The obligated amount is $15.7 million.
What is the period of performance?
Start: 2025-02-10. End: 2026-05-08.
What specific audit standards and methodologies will KPMG LLP be required to follow for this financial statement audit?
KPMG LLP will be required to follow generally accepted government auditing standards (GAGAS) and potentially specific directives from the Department of Homeland Security and the Office of Management and Budget (OMB). This includes standards related to independence, professional judgment, and reporting requirements to ensure the audit's credibility and adherence to federal financial management principles.
What are the key performance indicators (KPIs) that will be used to evaluate KPMG LLP's performance on this contract?
Key performance indicators will likely include the timeliness of audit deliverables, the accuracy and completeness of the audit report, adherence to the agreed-upon audit plan, and the quality of communication with DHS stakeholders. Performance will also be assessed based on the identification of significant financial reporting issues or control deficiencies.
How will the Department of Homeland Security ensure that the $15.7 million awarded is a fair and reasonable price for the services rendered over the contract duration?
The Department of Homeland Security will ensure price reasonableness through the competitive bidding process inherent in 'full and open competition.' They will likely review KPMG's proposal against established cost benchmarks, analyze the proposed labor mix and rates, and consider the firm's past performance and overhead structure to validate the proposed price.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Accounting, Tax Preparation, Bookkeeping, and Payroll Services › Offices of Certified Public Accountants
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 8350 BROAD ST STE 900, MC LEAN, VA, 22102
Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $15,732,013
Exercised Options: $15,732,013
Current Obligation: $15,730,573
Actual Outlays: $8,781,927
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $1,100,000
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00F275CA
IDV Type: FSS
Timeline
Start Date: 2025-02-10
Current End Date: 2026-05-08
Potential End Date: 2026-05-08 00:00:00
Last Modified: 2026-04-09
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